1982 (8) TMI 24

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....vered by G. P. SINGH C.J.-As directed by this court in Misc. Civil Case No. 128 of 1973, decided on 16th August, 1978, the Tribunal has stated the case and referred the following question of law for our answer : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in deleting the amount of Rs. 1,45,000 assessed as income from undisclosed sources ?....

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....inghaiah & Co. v. CIT [1980] 123 ITR 457. It was observed in that case that there can be no escape from the proposition that the secret profits or undisclosed income of an assessee earned in an earlier assessment year may constitute a fund, even though concealed, from which the assessee may draw subsequently for meeting expenditure or introducing amounts in his account books. It was further observ....

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....rom undisclosed sources. It also pointed out that the assessee was not claiming the benefit of the entire amount of Rs. 2,44,500 but only to the extent of Rs. 1,45,000 which, according to him, remained with him out of the profits earned from the undisclosed income in the earlier years. The assessee had also pointed out to the Tribunal that he had made an application on 7th March, 1961, addressed t....

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....to income from undisclosed sources earned in earlier years. Learned counsel, in this connection, referred us to two Madras decisions. These cases are S. Ahmed Khabeer Rowther v. CIT [1977] 106 ITR 984 and CIT v. Banarsilal Dhawan [1977] 109 ITR 360. This contention cannot be accepted. In Addl. CIT v. Ghai Lime Stone Co. [1983] 144 ITR 140 (MP) it was held by a Division Bench of this court that it ....